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Axcient gets $25m injection, promises channel cash splurge
SaaSy firm expects more sugar daddy copycats
Cloud recovery service startup Axcient has new funding and aims to fully compensate its SaaS-selling channel partners up front.
Axcient offers Recovery-as-a-Service (RaaS) from the cloud and has completed a $25m E-round funding exercise, taking total funding to $89.2m. Silver Lake Partners provided significant debt financing in the round.
The latest $25m will be used to help compensate channel partners when they get a sale instead of during the duration of the SaaS contract. This program is called SaaS:FLO (Software-as-a-Service: Front-Loaded Option).
It will also go towards the near-doubling of Axcient's R&D team, and growth in its sales and marketing headcounts.
Axcient has had its confidence boosted by experiencing more than 50 per cent growth in total new customers signed in 2014, according to the firm. It says analysts "expect the RaaS market to explode over the next several years, projecting compound annual growth of 56 per cent."
CEO Justin Moore said: "Under this new program, VARs make their margin day one as opposed to over time, enabling them to successfully deploy SaaS, make significant margin upfront, and compensate their sales reps without having to change their business model ... I expect we’ll see more companies look to private equity underwriters to finance a similar program in the coming years.”
The company says its Business Recovery Cloud mirrors a customer’s entire business in the cloud, including emails, files, applications, operating systems and all the interconnected network elements. Its pitch is that its service means "IT operations never go down."
Customers, it says, can use Axcient's BRC to replace legacy backup, server replication, disaster recovery and archiving products with a single integrated platform; powerful stuff but a big ask. Would you trust your entire IT infrastructure's availability on Axcient's service?
The more Axcient can persuade customers that this is true, the better it should prosper. ®